Discretionary Limit™

(D-Limit™)

Rests at the limit price. If the Signal fires, it reprices to one tick outside the unstable price.

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  • Designed to improve displayed trading for all market participants
About

Discretionary Limit (D-Limit) behaves like a regular limit order, except when the Signal predicts the price is about to change.

This triggers D-Limit orders to automatically reprice to 1 MPV outside that level.

Discretionary Limit™

Functionality

Example Scenario

Quote is Stable. The Signal is "Off."

The NBBO is $10.10 x $10.14. D-Limit buy order is booked at $10.10. The quote is stable.

ISO Sell order with a $10.09 limit crosses the spread; trade occurs at the resting price of $10.10.

One
Quote is Crumbling. The Signal is "On."

The NBBO is $10.10 x $10.14. A D-Limit buy order with a limit of $10.10 is booked at $10.09, 1 MPV below the unstable price ($10.10). The quote is unstable.

ISO Sell order with a $10.09 limit crosses the spread; trade occurs at the resting price of $10.09.

Two

Example Scenario

One
Two
Discretionary Limit™

Workflow

This diagram details a base case messaging flow for a client sending a D-Limit order to IEX Exchange, the Signal (i.e., Crumbling Quote Indicator or CQI) triggering, repricing of the order, and finally a client cancellation of the order.

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